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Cramer: I'm Hungry for Hain

Written by: Debra Borchardt02/08/13 - 10:47 AM EST

Tickers in this article:
AAPL ANNI CPB HAIN WFM

NEW YORK ( TheStreet) -- Debra Borchardt: Jim, let's talk about Hain Celestial Group (HAIN) . The company reported their earnings. Their profits were up. They beat expectations, but on the revenue side, they missed so the stock is getting hammered.

Jim Cramer: Irwin Simon (Hain's CEO) came on Mad Money last night. I asked about the problems. He did what I think most executives would do, he said, "Look, what kind of revenue growth do you need to see us have? What do we need to do to satisfy the market after our long outperformance?"

It's funny, it's like Apple (AAPL) , what do we need to do? What do we need to do? They made an acquisition and some of its not working. So, they're addressing it and they'll eliminate what's not working.

Debra Borchardt: As you mentioned what's working is that their net sales rose 24%, their gross profitability up 25%.

Jim Cramer: It's not even a high multiple stock.

Debra Borchardt: We know the market is in love with organic. We know that people are buying the stuff. They're willing to pay high prices to have this healthy stuff. So, all of it is in favor of Hain. They're kind of at the midpoint of their 52-week range. It looks like people are missing out on what could be a good deal here.

Jim Cramer: I think they are. Annie's (ANNI) has a higher price during its multiple. Not as proven as Hain. Whole Foods (WFM) has a price range multiple that's much higher. Now Whole Foods has executed, executed, executed. They've got a big runway.

Barron's had a very critical piece about Irwin Simon's company back in October. There they questioned whether the growth needs constant acquisitions. They've been acquisitive. Irwin Simon addressed that by saying there are a million opportunities for acquisitions. They can do that. The gross margins were good. The organic growth was healthy.

This is one of those instances where the stock is down. I think it represents attractive value. Carl Icahn has big position in it. If he decided, listen, I'm going to put this in play he could. Campbell's (CPB) would buy them I believe to be able to raise their earnings multiple because they don't have enough natural stuff.

People are particularly perturbed at that last acquisition didn't pan out so fast. There is another acquisition that he did that looks like it's working, which is a juice acquisition. I think that people got spoiled here, but that Irwin has not let anyone down. He's doing his same style that he's done with other acquisitions before. Parts of it haven't worked out; he does have some underperforming units. He'd be the first to tell you that.